1,300 jobs on the line as Alstom plans to end production of rolling stock in Derby
After months of talks with Government, Alstom is planning to end the production of rolling stock in Derby and will be starting a redundancy consultation affecting manufacturing staff, matching up with the end of current projects.
It sees around 1,300 jobs put at risk at the Litchurch Lane factory following a dwindling order book due to HS2 setbacks.
Alstom is the UK & Ireland’s leading supplier of new trains and train services, having built, or building, just under 40% of the UK mainline train fleet; as well as the entire fleets in service with London Underground.
The company is one of Derby’s largest private sector employers, employing 2,000 highly skilled people who design and build trains at their Derby Litchurch site, which is the UK’s only train factory.
Leader of Derby City Council, Councillor Baggy Shanker, commented on the future of Alstom’s train manufacturing within Derby: “We’ve been informed by Alstom this morning that after months of talks with Government, they must now plan to end the production of rolling stock within the city and will be starting a redundancy consultation affecting Derby manufacturing staff, coinciding with the end of current projects.
“The Litchurch Lane factory site is a unique asset for Derby and the UK and we understand the impact these supply chain job losses will have on our residents and the wider region.
“We’ve been working closely with Alstom, Unite and senior Government officials to explore potential resolutions to the current situation since the announcement of possible job cuts back in September and we’re saddened to hear that a solution has not yet been possible. Minsters really need to commit and focus on this vital industrial sector. To date I’m disappointed that no Minister has agreed to speak to us on this matter.
“The rail sector is immensely important to the city, and was recognised earlier this year with Derby being named the home for the new Great British Railways headquarters.
“We stand with Alstom and their workers during this disappointing time and continue to support wherever we can.”
Leicestershire building society plans office move
Market Harborough Building Society (MHBS) has revealed plans to move to a new head office, and is pledging to offer meeting and event space to local groups and charities.
MHBS, whose 120 strong management and administrative functions are currently based across two sites in the centre of Market Harborough, is moving to the former Joules building at The Point Business Park.
The 12,152 square foot office has been empty since 2019 so MHBS’ move by spring 2024 will help reinvigorate this landmark location.
The move includes purchase of a 65 space car park adjacent to the office building which will ensure the venue is accessible for groups of all sizes.
The Society’s CEO, Iain Kirkpatrick, says: “By moving head office we’re able to unite our colleagues in one building for the first time, creating a modern and flexible working environment which will encourage more team working and collaboration which is good news for members, whilst also supporting the health and wellbeing of our people.
“The Point’s reputation as a premium location also means we can boast a compelling work environment for our teams, now and in the future as we continue to grow the Society.
“I’m also personally delighted that The Point offers us the ability to share the benefits of our new office with local community groups, clubs and societies by making space available for them to host meetings or other events.
“Supporting our community is at the heart of our purpose as a mutual and our ambitious Thrive! Agenda, which is focused on giving back to the communities we serve.”
The Society is upgrading the new office space with sustainability at the heart. This principle will underpin the design and see MHBS re-purpose as much of what is already on site as possible in order to minimise wastage. All the works will be undertaken by local contractors, with the key project team all based within 15 miles of Market Harborough.
The Society has no plans to move its Welland House Branch, which occupies space in one of its current head office buildings. Kirkpatrick says: “We are committed to providing face-to-face service in our Market Harborough branch, which we know is invaluable to many customers especially the more vulnerable members of society.
“The branch offers much more than a place to transact, our colleagues offer a wide range of support to help members look after their financial and personal wellbeing, as well as playing a vital role in their wider communities through fundraising and volunteering activities.”
Project Better Energy appoints chairman
Project Better Energy, a clean technology and heating solutions provider, has appointed Volker Beckers to the board of the company as non-executive chairman.
After graduating from Cologne University with a degree in Economics & Business Administration and an initial career in IT, Mr Beckers has spent the last three decades within the international energy industry, serving most notably as group CEO of RWE Npower plc until the end of 2012 and prior to this, its group CFO from 2003 to 2009.
His professional experience spans both the private and public sectors, as well as academia, and since 2013, Beckers has held several leadership roles at a diverse portfolio of private companies, in addition to board roles within government bodies such as HM Revenue & Customs and the Nuclear Decommissioning Authority (NDA) Board.
He also sat on the Advisory Board of the EU Centre for Energy and Resource Security (EUCERS) at King’s College, and is chair of the Advisory Board with Erasmus Centre for Future Energy Business (ECFEB), a specialist research center at Rotterdam School of Management.
Based in Burton-upon-Trent, Project Better Energy was founded by Chief Executive Officer Simon Peat in 2011. Beginning in the residential solar market, the company has since expanded its product range to include off-peak power storage, electric vehicle chargers, air-sourced hot water cylinders and infrared heaters, providing a diversified range of clean technology solutions to both the residential and commercial property sectors.
The business has experienced significant growth over the last twelve years and is now the UK’s largest solar panel retailer, installing nearly 40,000 solar energy systems to date. Additionally, its Project EV division has installed over 80,000 electric vehicle chargers across the residential, commercial and public sectors, such as local councils and the NHS, as well as major retailers including B&Q and Arnold Clarke.
The group now employs approximately 300 people across its divisions and generates around £100m of sales on an annual basis.
Mr Beckers’ appointment comes after the recent announcement that Freshstream has acquired a strategic stake from the company’s shareholders, who reinvested alongside the firm. Project Better Energy is the 6th investment for Freshstream’s first independent fund, which closed earlier this year having raised €762 million.
Volker Beckers, incoming chairman of Project Better Energy, said: “Project Better Energy has quickly grown into the UK’s largest solar panel retailer and is fast becoming a leading provider of EV systems and energy efficiency solutions as demand for these technologies has expanded significantly.
“Demand for these services will only grow further as businesses and organisations begin to ramp up initiatives aimed at meeting regulatory requirements to integrate clean energy solutions, offer electric vehicle charging infrastructure and enhance energy efficiency in both new and existing developments.
“Simon has built a talented and motivated team over the past twelve years, as well as a strong industry network and customer base, which will provide the foundation for the company’s next phase of growth and is underpinned by recent investment in the business. I look forward to working with the Board to provide the governance oversight and market insights to guide Project Better Energy as they realise the future vision for the business.”
Simon Peat, CEO of Project Better Energy, said: “We are thrilled to welcome Volker as chairman at Project Better Energy as we reach this exciting inflection point for the company.
“His breadth of non-executive roles and multi-national experience built over many years will further enhance the capabilities and expertise of the board as we execute our ambitious growth strategy to provide a diverse range of clean technology and energy efficiency solutions across the UK.”
Expansion work starts at ESPO’s Enderby warehouse
The first spade in the ground has signalled the start of expansion at ESPO’s warehouse and head office.
The 26,000 square foot extension to the site will double the company’s current storage capacity – enabling more stock, quicker turnarounds and reduced lead times for customers in the UK and across the world.
A ground breaking ceremony marked the beginning of the project, designed by architects IMA.
Work by contractors Galliford Try is expected to take a year and will also offer apprenticeships, on-site training and work experience opportunities for local people to benefit from the expansion.
Employing more than 400 people and offering school supplies and procurement services across the UK, ESPO has operated from its current location at Grove Park in Enderby since 2006.
ESPO is a partnership consortium of five councils and has enjoyed sustained growth over the last decade. It is now looking to build for the future as part of its growth strategy.
With returning and new customers and its package to support multi academy trusts the Enderby base has quickly reached capacity, deciding now is the time to expand and capitalise on its market strength.
Kristian Smith, Chief Officer at ESPO, said: “This is an exciting step for us. The last few years have seen unprecedented growth and this extension is our chance to extend our offer to customers and continue to invest in great service.
“We’re ideally located at our Enderby base and with great transport links to the rest of the UK, so it makes sense to extend our current site to secure our long-term future on Grove Park.
“The work will also benefit local people and nurture those starting out their career in the construction sector thanks to the commitment from Galliford Try, and we look forward to welcoming them over the next few months.
“We’re confident about the future and cannot wait until we can start to take advantage of the benefits this will inevitably bring.”
University of Law building in Nottingham acquired
Franklin Real Asset Advisors, on behalf of the Franklin Templeton Social Infrastructure Strategy, has completed the acquisition of a university building comprising around 28,000 sq ft in the city centre of Nottingham.
The asset is fully leased to the University of Law on a long-term basis and benefits from a WALT of over 10 years. Klaus Schmid, director, Franklin Real Asset Advisors, says: “We are pleased to acquire this asset which has recently undergone refurbishment, with the tenant making significant investments to utilise it for long-term educational purposes. “The university’s efforts to not just provide high quality education but also to encourage and support underrepresented groups to pursue such education further create a strong alignment for the asset with the impact objectives of our strategy.” Michel Lim, vice president at Franklin Real Asset Advisors, adds: “This acquisition is an addition to our growing portfolio of educational assets in the United Kingdom. It originates from an off-market approach, allowing us to acquire it at attractive terms for our investors, while capitalising on the current market environment. “Through our credibility and relationship with the seller, we were able to source this unique asset and we look forward to closing on similar assets in the future.”Pinelog welcomes new production manager
Steve Betts has joined Chesterfield-based timber lodge manufacturer Pinelog Limited as production manager.
He brings a wealth of experience in manufacturing, engineering and fabrication to his role at Pinelog.
Within his new role, Steve will support Pinelog’s detail driven process, from design conception, manufacture, delivery, installation, and customer handover.
Steve said: “I’m a process driven person, with years of experience in fine tuning production and developing teams’ skillsets. I’m excited to see how I can support Pinelog’s vision.”
Steve’s employment background spans a number of blue-chip companies, including Toyota in both Derby and Japan for 17 years. Most recently, Steve worked in a consultancy role for a modular building manufacturer in the north of the UK.
He explained: “I first became aware of Pinelog when I visited Mercia Marina holiday park in Derby in my previous role and saw one of the company’s timber lodges. I was impressed by Pinelog’s quality.
“I am delighted to now be working for a company with such high standards of design and production. The attention to detail is unrivalled. Pinelog’s products stand apart in the timber lodge market.”
As well as the production of complete timber holiday lodges, in his new role Steve will also be overseeing the production of the commercial buildings designed and built by Pinelog which are also manufactured at the company’s Chesterfield site.
Steve’s appointment is just one of a number of new management appointments Pinelog has created following its move to a new, larger site in Chesterfield in 2023. Earlier this year Pinelog appointed Judy Barwell to the position of sales account manager.
Welcoming Steve to the role, Nick Grayson, chairman of Pinelog Group, said: “Steve’s comprehensive background in production and management within a number of industries provides us with a springboard for further developing our own best in class processes.”
Netherfield-based educational resources supplier wins major Welsh local authority contract
Netherfield-based educational resources supplier Findel has been awarded the framework for the supply of education aids, curriculum aids and associated products by Wrexham County Borough Council, the lead council, on behalf of 22 local authorities in Wales.
The multi-million pound framework is to supply to primary and secondary schools in Wales. This is a national framework, available on request for any public sector organisations across England, Scotland and Wales to use.
Findel is now the approved supplier of educational resources to more than 1,400 schools across 22 local authorities in Wales after being awarded the framework.
The company was the core supplier on the previous iteration of this framework with Wrexham County Borough Council running from 2019 to 2023. The new agreement to supply educational resources will run until 2027.
Findel’s team which will work with schools also includes native Welsh speakers to support the growing priority of the language being taught on the Curriculum for Wales.
Findel’s Chief Executive, Chris Mahady, said: “Not only retaining, but growing our supplier relationship with all the Wales local authorities and their schools is testament to Findel’s commitment to provide customers with the highest quality of products and customer service.
“As a business, we are truly dedicated to our ESG activities to positively support the communities in which Findel and its customers operate. It’s fantastic to see that this was a differentiator for us when it came to being awarded the framework.
“We look forward to continuing to work with schools across Wales to ensure they have the right products and supplies to support pupils and teachers alike.”
Fall sees target to halve inflation met
The rate of inflation fell sharply to 4.6% in the 12 months to October, the lowest rate in two years, achieving the Government’s pledge to halve inflation by the end of the year.
Largely due to a drop in energy prices, it follows sticky figures last month where inflation failed to drop as expected, making for an annual rate of 6.7%.
Meanwhile core inflation, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, though falling is still stubbornly high at 5.7% for the 12 months to October, down from 6.1% in September.
Alpesh Paleja, CBI lead economist, said: “A big drop in inflation was always expected in October, with last year’s energy price cap rise falling out of the annual comparison. But even taking this into account, inflation is heading in the right direction and the Government’s pledge to halve inflation by the end of the year has been met.
“Inflation should continue to fall in the months ahead. But the decline is set to be slow, and the CPI rate is likely to remain above the Bank of England’s target for much of next year. It’s worth noting that domestic price pressures remain sticky, and uncertainty over labour market data makes it difficult to gauge how much this is adding to inflationary pressure.
“Nonetheless, we’ve likely reached the peak of rising interest rates, and many are expecting the Bank of England to cut rates at some point next year. But with inflation set to fall slowly and the Bank of England being clear in their ‘higher for longer’ message, businesses and consumers shouldn’t expect a significant reduction in rates anytime soon.”
Driving forward industrial energy efficiency key to achieving Net Zero targets
Manufacturers have been hit by soaring gas and electricity prices hitting record highs, leaving businesses desperate to cut their energy use, according to a new report Driving Industrial Energy Efficiencies, published by Make UK and Inspired PLC.
The new research delves into how energy-efficient practices and technologies can help companies save money and boost productivity while at the same time moving towards their Net Zero targets.
Net Zero is a priority for 92% of businesses and 68% have already made investments to start on that journey with two-fifths (22%) planning to in the next 12 months.
Over the past two years, the cost of energy has been highly turbulent, exacerbated by an increase in operational costs. This has left manufacturers forced to operate with a significantly reduced margin, making introducing energy efficiency projects an attractive proposition.
The report shows that businesses have been taking a two pronged approach to reducing energy consumption, from low-cost, low effort measures to more costly investments which deliver equipment and process upgrades. Simple steps such as getting the right energy supplier and securing an advantageous contract is critical.
Monitoring energy use through smart metres and sub-metering can further cut consumption, providing more granular detail of unnecessary use. One rubber compound manufacturer saved £62,734 through a better energy contract and over £48,000 by reducing waste through circuit-level (sub-meter) monitoring.
Equipping plant machinery with meter reading tools or sensors, can offer real time data access by connecting it to the cloud (Internet of Things Technologies), enabling faults to be spotted as they happen.
Implementing Voltage Optimisation, which only allows the exact amount of energy a business needs to be brought in from the National Grid, can also make significant savings. While overhauling compressors – which account for 10% of all industrial energy used – can cut energy consumption by 50%.
One energy intensive company which galvanises plant equipment introduced digital controls to deliver variable on-demand power to its furnaces, saving £400,000 on energy bills and reducing its carbon output by 1000 tonnes.
Faye Skelton head of policy, Make UK, said: “Britain’s manufacturers have made significant steps to cut carbon emissions and move towards Net Zero. But in order to supercharge that journey, business needs Government to play its part in driving the process forward.
“To that end, Government needs to commit to introducing a National Advisory Energy Service similar to the model of Made Smarter which helps SMEs digitalise their production processes. This should provide smaller funding to companies of up to £20,000, include an energy audit, sub metering and an implementation plan as well as helping businesses access the right funding.
“We need to see also an immediate extension of the 12 months of 100% business rates relief on green plant machinery and equipment and building improvements to three years to reflect the business payback period.”
With the abolition of the Energy Efficiency Taskforce (EETF) which had expected to put forward policy proposals to support greater energy efficiency, Make UK is calling on Government to use the upcoming Autumn Statement to help companies transition to net zero through energy efficiency measures.
Among these calls included in the report, is for Government to undertake a gap analysis of the tax incentives available on energy efficiency to check no type of business falls between the cracks.
Heat recovery may have the biggest potential to improve energy efficiency, but as yet is almost untapped. It uses the steam or waste heat from machinery (e.g., compressors, ovens/furnaces, galvanisation baths) or high temperature processes, to heat up other parts of the process (low temperature), hot water, or for the space heating of the building. It can also be used to produce electricity via the Organic Rankine Cycle, a type of thermodynamic process which can use low temperature industrial waste heat.
Construction company appointed to build new 20,400 sq ft regional hub for logistics firm
Construction company Glencar has been appointed by Verdant Regeneration to design and build a new 20,400 sq ft regional hub for DX (Group) plc, a provider of delivery solutions including parcel freight, secure courier, 2-Man and logistics services, at a new 200-acre development site in Ilkeston, Derbyshire.
The DX regional hub project which will also include construction of offices and external works will be built to a high standard with a raised dock and onsite car parking.
The new hub and depot will provide significant additional regional capacity, improve efficiency by reducing stem mileage, delivering environmental and customer service benefits. PC is expected by early April 2024.
Pete Goodman, Managing Director – UK Midlands, North and Ireland, said: “We are very happy to have been appointed by new customer Verdant Regeneration on what will be the first development to come out of the ground at this brand new strategically located development site which has been a long time in the planning.
“This development has been designed with sustainability at the core which when combined with large amounts of amenity and green space at New Stanton Park will see fishing ponds, rural walkways and cycle tracks all enhanced to link the site and wider communities.
“Glencar are fully committed to sustainable construction and a sustainable future. Our ESG approach has been deliberately designed to help us to create a positive impact on the world in which we operate as well as a more innovative, resilient and successful business for the future.
“We are committed to being a responsible business and to supporting customers in achieving their own sustainability targets and look forward to working closely with Verdant Regeneration and the broader project team.”
David Grier of Verdant Regeneration said: “Having acquired the site in 2020, we have worked hard across the team to quickly bring forward an outline planning application for a development of 2.6m sq ft on what is one of the largest regeneration projects within the region.
“We are delighted to have now successfully secured outline planning consent and thank Erewash Borough Council for the professional manner and efficiency in which they have dealt with the planning application.
“New Stanton Park offers an excellent strategic location, blending an active rail connection with strong private and public transport connectivity, plentiful labour, large power supply and high volume water connection.
“When combined, we are confident this will result in a highly successful development with the next chapter set to positively transform and improve the area, bringing forward large scale job creation in the process.”
Paul Ibbetson, Chief Executive Officer, DX (Group) plc, said: “DX is delighted to be announced as the first business taking space on New Stanton Park Industrial Estate, a redevelopment scheme near Nottingham. The purchase of this 25,000 sq ft site will enable us to create a major new regional hub and depot to service our Group’s parcel freight activities.
“The new hub and depot will provide significant additional regional capacity, improve efficiency by reducing stem mileage and is in line with our plans to make strategic property investments.
“We also look forward to creating further job opportunities in the area. Construction, which will benefit from a raised dock and mechanisation, is expected to be completed during Q2 2024.”
New Stanton Park has outline planning permission for the construction of 2.6m sq ft of industrial/warehouse units from 11,000 sq ft up to 1,068,00 sq ft in a single building with the potential to deliver up to 4,000 new jobs once fully developed.
